How Are Auto Insurance Rates Calculated?

Tue, 29 May 2007 21:19:00 GMT

There is a different base rate for each type of car and geographical area. While individual companies may differ in the amounts they assess for each factor, the major rating factors are fairly universal. These factors are as follows:

Your age
Statistics show that, as a group, drivers under age 30 have more accidents per mile driven than the general population. Thus, young drivers are charged higher rates, as are families with young drivers in the household.
Your gender
Young men are involved in more accidents per miles driven than any other population group. The difference is especially pronounced for male drivers under 30. Washington law allows insurance companies to charge on the basis of gender and age where the actual proof of differences in risk exists.
Your car
As a rule, the more expensive your car, the more you will pay. Because sports cars and high performance cars are involved in proportionately more accidents, cost more to repair and are more likely to be stolen, they cost more to insure.
Your location
The higher number of accidents in a more heavily populated area raises both liability and collision premiums. The law allows a company to calculate your rate based upon your address, even though you may drive to a more urban or rural area. It is anticipated that most miles driven are within a certain radius of the home address.
Driving patterns
The more you use your car the higher your rates. A car used to commute 15 or more miles to and from work has an increased risk of being involved in an accident, than one that is driven for pleasure use, not on a daily basis.
Your driving record and claims history
Most companies apply a surcharge to drivers who have been involved in an accident or convicted of multiple traffic violations. Also, the more claims you have made, the higher your rates are likely to be.

An Auto Insurance Company Is Not Offering To Pay 100 Percent Of My Damages On A Liability Claim. Can You Help?

Mon, 04 Jun 2007 21:51:22 GMT

NDOI has the authority to determine if the insurer conducted a complete investigation prior to making their determination of fault. The Nebraska Department of Insurance does not have the authority to decide issues of fault in an accident. If you do not agree with the insurer's assessment of fault, you have to ask the courts to rule on the matter or pursue your claim under your own policy of insurance.

Are There Any Exemptions To The Agency Licensing Rules?

Tue, 29 May 2007 21:19:00 GMT

Sole Proprietorships are not required to obtain an insurance agency license unless (1) the sole proprietorship falls within the agency definition, or (2) the sole proprietorship holds itself, himself or herself out to be an insurance agency.

Are There Any Licenses That Are Exempt From The Pre-Licensing Educational Requirements?

Tue, 29 May 2007 21:19:00 GMT

The prelicensing education requirements do not apply to:

chartered property and casualty underwriter,
chartered life underwriter,
registered health underwriter,
certified employee benefit specialist,
certified financial planner,
accredited insurance advisor,
chartered financial consultant,
master's degree in insurance.

Are There Any Restrictions On Who An Agency, Agent, Or Broker Can Pay Out Commissions To?

Tue, 29 May 2007 21:19:00 GMT

No agency shall pay any commission to anyone other than a licensed agent or broker and no licensed agent or broker shall assign any commissions to any unlicensed agency.

Are There Certain Fiduciary Responsibilities That Are Placed Upon A Licensed Agent Or Broker?

Mon, 04 Jun 2007 21:51:22 GMT

The State of Nebraska requires every person acting as an insurance agent, broker, or agency in this state to be responsible in a fiduciary capacity for all funds received or collected as an insurance agent, broker or agency. Nothing shall be construed to require any person to maintain a separate bank deposit if the funds of each principal are clearly ascertainable from the books of accounts and records of that person.

Licensees and agencies shall keep, at their place of business, the usual and customary records pertaining to transactions associated with their license. All records shall be kept available and open to the inspection of the director or his or her representatives at any time during business hours. Records shall be maintained for three years following the completion of any insurance transaction.

All policies and applications solicited by an insurance agent, broker, or agency shall identify the name of each. If the application is attached to the policy upon issuance, the required identification may be contained in either the application or the policy.

Can A Finance Company Take Out Insurance On My Car And Charge Me For It?

Tue, 29 May 2007 21:19:00 GMT

Yes, if under the terms of your loan, you agree to provide comprehensive and collision insurance, and you fail to do so. The lending institution can obtain a policy to protect its interest. These policies typically do not offer liability insurance coverage to meet the state's financial responsibility (mandatory liability) laws.

Can A License That Has Lapsed Be Reinstated?

Tue, 29 May 2007 21:19:00 GMT

Effective August 28, 1999 any license, being reinstated after 30 days and up to 36 months from the expiration of the license an individual, may be reinstated by submitting a completed application along with the reinstatement fee ($100.00), and by submitting a new appointment.

Can An Insurance Company Cancel My Auto Or Homeowner's Policy?

Tue, 29 May 2007 21:19:00 GMT

Yes. If an auto policy is involved, they can cancel if the consumer fails to pay the premium or if the consumer's license has been suspended or revoked during the term of the policy. If a homeowner's policy is involved, they can cancel if the consumer fails to pay their premium, if there is a fraud or serious misrepresentation when completing the insurance application, if the consumer is convicted of a crime or if changes are made to the property that increase the risk of loss. An insurance company can cancel a new policy for almost any reason within 60 days of the issue date of the new policy.

Can An Insurance Company Write An Estimate Using Parts Not Made By The Original Manufacturer Or Salvage Parts?

Tue, 29 May 2007 21:19:00 GMT

Yes, they do not have to put new parts on a used vehicle. A company only has to return the vehicle to its condition before the damage.

Can Anyone Buy Individual Health Insurance?

Tue, 29 May 2007 21:19:00 GMT

In Nebraska, your access to individual health insurance may depend on your health status. Private insurers in Nebraska are not prohibited from turning you down, charging more, or limiting coverage because of preexisting conditions. If you are federally eligible, CHIP is your only guaranteed access to individual health insurance, though you may be able to buy individual coverage from other insurance companies.

Can Credit History Be Used As A Reason To Non-Renew Or Refusal To Insure My Home Or Car?

Tue, 29 May 2007 21:19:00 GMT

Yes. Current Nebraska law does not prevent an insurer from doing so.

Can Health Insurance Companies Deny My Application For Individual Insurance Due To A Health Condition?

Tue, 29 May 2007 21:19:00 GMT

Yes, the company has the right to deny coverage for almost any reason on a new application. However, once you are accepted for coverage the company cannot cancel your policy except for nonpayment of premium.

Can I Be Added To My Parents' Automobile Insurance?

Tue, 29 May 2007 21:19:00 GMT

If you drive a family car, you can be added to your parents' policy; however, the cost of the policy will increase. If you have your own automobile, your parents' company may sell you a separate policy but at a different rate than your parents. You must also be under a certain age in Nebraska, that being 25, and be either living at home or a fulltime student. Your parents' name must also appear on the title of the car you drive.

Can I Be Denied Group Coverage If I Am Sick At The Beginning Of The Coverage Period?

Tue, 29 May 2007 21:19:00 GMT

All group health plans in Nebraska must limit exclusion of preexisting conditions. There are rules about what counts as a preexisting condition and how long you must wait before a new group health plan will begin to pay for care for that condition. Generally, if you join a new group health plan, your old coverage will be credited toward the preexisting condition exclusion period, provided you did not have a long break in coverage.

Can I Be Denied Group Coverage In Nebraska?

Tue, 29 May 2007 21:19:00 GMT

Coverage under your group health plan (if your employer offers one) cannot be denied or limited, nor can you be required to pay more because of your health status. This is called nondiscrimination.

Can I Be Forced To Wait For Coverage To Begin If I Am Sick At The Time I Buy Individual Insurance?

Tue, 29 May 2007 21:19:00 GMT

Other than in CHIP, there are no limits on preexisting condition exclusion periods under individual health plans in Nebraska. Coverage for preexisting conditions may be temporarily or permanently excluded. Also, individual plans may exclude conditions for which you ever got care or for which the insurer thought you should have sought care. This is called the prudent person rule. Finally, individual plans can also impose preexisting condition exclusion periods on pregnancy and on genetic information.

Can I Be Forced To Wait For My Group Coverage To Begin?

Tue, 29 May 2007 21:19:00 GMT

Yes. This is called the preenrollment period, usually between 3090 days. These waiting periods, however, cannot vary due to your health status. However, if you simply change group plans, you cannot be forced to wait for the new coverage provided that you can provide proof of continuous creditable coverage.

Can I Choose Where I Want To Have My Car Repaired?

Tue, 29 May 2007 21:19:00 GMT

Yes. You are generally free to choose whatever shop you want to do the work. However, the insurer is only obligated to pay for the going rate for repairs in your area. Therefore, if the shop you choose charges a higher labor rate, you may end up paying the difference.

Can My Doctor Bill Me For The Services I Received When I Am Covered Under An Hmo?

Tue, 29 May 2007 21:19:00 GMT

No. Under Nebraska law, a network contracting provider cannot bill you even if the insurance company is slow in paying; and they cannot bill you for the difference between the amount charged and the amount they are paid by the insurance company. You are only responsible for your copayments, deductible or coinsurance.

Can My Employer Change Our Health Insurance Carrier And Level Of Benefits During The Year?

Tue, 29 May 2007 21:19:00 GMT

Yes. It is completely up to the employer whether or not they will offer health insurance to employees at all and they can change carriers and level of benefits at any time.

Can My Health Insurance Be Canceled If I Get Sick?

Mon, 04 Jun 2007 21:51:22 GMT

No. Your health insurance cannot be canceled because you get sick. All health insurance is guaranteed renewable.

Can My Health Insurance Carrier Continue To Raise My Premium Rates?

Tue, 29 May 2007 21:19:00 GMT

Yes. Nebraska is an open competition state and, as such, we do not have the authority to regulate premiums on most types of health insurance. Our state relies on competition among companies to determine the premium rates. Medicare supplement insurance premiums are subject to some regulatory oversight.

Can The Company Refuse To Renew My Auto/Homeowners Policy?

Tue, 29 May 2007 21:19:00 GMT

Yes, a company can refuse to renew a policy for almost any reason. An insurer must give you 30 days notice and the specific reason for their refusal to renew.

Can The Driving/Accident Records Of My Child/Spouse Have An Impact On My Ability To Buy Auto Insurance?

Mon, 04 Jun 2007 21:51:22 GMT

Yes, the driving record of any licensed driver in your household will affect the decision of the insurance company to insure your vehicle(s). It can cause you to be turned down for insurance coverage or to pay high risk insurance premiums. You may want to ask your agent or insurer about a driver exclusion endorsement.

Can The Insurance Company Tell Me Where To Have The Repair Work Done Under Either Homeowners Or Auto?

Tue, 29 May 2007 21:19:00 GMT

Yes, if the insurance company is willing to guarantee the work. You always have the option to go to the repair shop of your choice, but you will be responsible for the additional costs. Your insurance company may only be obligated to pay for the lowest estimate.

Can The Insurance Provider Require The Repair Shop To Use Generic Or Used Parts?

Tue, 29 May 2007 21:19:00 GMT

Generally, the insurance provider must reimburse you for the repair or replacement of your vehicle with like kind and quality parts. However, the parts may not have to be new parts. If the parts and repairs are guaranteed by the repair shop, and are in the same condition as the parts damaged, they conform to the repair requirements. If you insist on certain parts you may have to pay the additional cost.

Do All Auto And Homeowners Policies Have A Grace Period?

Tue, 29 May 2007 21:19:00 GMT

No, Nebraska law does not require any auto policy to have a grace period

Do I Have A Grace Period For The Payment Of My Automobile Insurance Premium?

Tue, 29 May 2007 21:19:00 GMT

No. There generally is no grace period in an automobile insurance policy. Nebraska allows for immediate cancellation of your policy for unpaid premiums, with proper notice.

Do I Have To Have A Workers Compensation Policy?

Tue, 29 May 2007 21:19:00 GMT

If you are a construction employer and have one or more employees, workers compensation law requires you to have a policy. For all other types of employers, you must have a policy if you have five or more employees.

It doesn't matter if the employees are fulltime, parttime, permanent, or temporary. Although you may not be required by law to carry workers compensation insurance, you may want to purchase workers' compensation coverage to reduce exposure to civil liability for workplace injuries and jobrelated disabilities. Speak with your agent or broker to discuss the possible risk exposure you may have if you do not buy workers' compensation insurance.

Also, some employers will not contract with your company unless you have a policy. If this is their requirement, you will have to buy a policy.

Do You Have To Buy Uninsured Motorist Coverage On An Auto Policy?

Tue, 29 May 2007 21:19:00 GMT

Yes, an insurance company cannot issue a contract of automobile liability coverage in Nebraska without including uninsured motorist coverage on the policy.

Does Nebraska Control Auto And Homeowner Premium Rates?

Tue, 29 May 2007 21:19:00 GMT

No. Nebraska allows companies to set their premiums.

Does The Company Have To Refund My Premium On The Auto/Homeowner's Policy If I Cancel The Contract?

Tue, 29 May 2007 21:19:00 GMT

Yes. However you may receive less than the unearned premium because the company may charge the consumer for processing the cancellation or setting up the original policy.

Does Workers Compensation Cover My Family Members?

Tue, 29 May 2007 21:19:00 GMT

As of August 28, 1998, family members are covered unless they are specifically excluded on an endorsement (NCCI form WC 00 03 08, Partners, Officers and Others Exclusion Endorsement). However, even if family members are excluded, they are still counted towards the number of employees to determine if you are required by law to carry workers compensation insurance.

Does Workers Compensation Cover Sole Proprietors, Partners And Corporate Officers?

Tue, 29 May 2007 21:19:00 GMT

Sole proprietors and partners are considered employers, not employees, and are not covered by your policy. Sole proprietors and partners can be added to the policy by endorsement. Payroll for all sole proprietors and partners is currently assessed at $15,600 per year.

Corporate officers are considered employees of the corporation and must be covered. An exception is made for corporations when there are no more than two owners of the corporation who are also the only employees of the corporation. Currently, payroll for corporate officers is based on actual payroll, subject to a minimum of $250 per week and a maximum of $500 per week.

How Are The Premiums Determined?

Tue, 29 May 2007 21:19:00 GMT

The premiums are determined by looking at the individual's age, medical history, family medical history and career.

Life insurance is a complex subject that has its own language. In order to shop intelligently, it would be helpful to be familiar with the types of life insurance products available. Please refer to the question What are the different types of life insurance policies? for a brief explanation of life insurance policies.

How Can I Obtain Insurance If Several Companies Have Rejected Me?

Tue, 29 May 2007 21:19:00 GMT

If all attempts fail and you are unable to obtain automobile insurance, some states allow you to obtain insurance through a state insurance program. However, this program should be a last resort because the premium rates are generally higher than those of private companies are.

How Can I Save Money On My Auto Insurance?

Tue, 29 May 2007 21:19:00 GMT

There are several ways to save money on car insurance. However, it is important to maintain adequate levels of insurance to cover unexpected accidents. The following are some examples of how to save money on car insurance while maintaining safe levels of coverage.

Car choice
Before you buy a car, check with your agent to see how much the rate for the car you have chosen will be and if the premium and the car payment fit within your budget.
Deductible choice
Your insurance premium can be decreased if you increase your portion of the risk. Raising your collision and comprehensive deductibles from $250 to $500 or higher can save you nearly half the cost. However, it is important to remember that you will have to pay the higher deductible any time you use the lower premiums.
Discounts
Ask each company what special discounts it offers. For example, discounts are often available to young drivers who are good students or have taken a drivers education course. Discounts are also available to seniors who take an additional drivers education course.
Streamline your policies
You may have an overlap in coverage, such as medical coverage and health care, or collision and uninsured motorist property damage Ask your agent to explain what each coverage offers.
Shop around
Because each company's rates are based on its own loss experience, the premium charged by different companies can be different for the same driver. However, the cheapest insurance is not necessarily the best.

Companies differ in the skill, care and speed with which they settle customer claims. It is important to research any companies that your have never heard of before.

How Do Add A Line Of Authority To My License, Or Request A New License?

Mon, 04 Jun 2007 21:51:22 GMT

To add or delete lines of insurance to an existing agent's license, the applicant submits Form #DOI9110. If a new license is requested, a check in the amount of $5.00 must be remitted with the form. When adding variable contracts to an existing license, a copy of the licensee's Central Registration Depository Form (CRD) must be submitted with the FORM #DOI9110.

How Do I Buy A Policy?

Tue, 29 May 2007 21:19:00 GMT

You can buy workers compensation insurance from a private insurer. Your agent or broker has access to workers compensation companies and can provide you with quotes.

How Do I Contact The Nebraska Insurance Department, Or Mail Required Documents?

Tue, 29 May 2007 21:19:00 GMT

The mailing address
State Of Nebraska
Department Of Insurance
941 "O" Street, Suite 400
Terminal Building
Lincoln, NE 685083639

email: licensing@doi.state.ne.us
Licensing (402) 4714913
Switchboard (402) 4712201
Fax (402) 4716559

How Do I Go About Renewing My License?

Tue, 29 May 2007 21:19:00 GMT

Renewal instructions will be mailed to the licensee's business address approximately 90 days prior to the expiration of the license.

How Do I Know If I Am In The Construction Industry?

Tue, 29 May 2007 21:19:00 GMT

If your company erects, demolishes, alters or repairs any structure, you are in construction. This includes earthmovers, concrete contractors, equipment installers, carpenters, painters and telephone installers, to name just a few.

How Do I Select An Agent And A Life Insurance Provider?

Tue, 29 May 2007 21:19:00 GMT

Simply stated, by doing your homework. You must be certain to research the credential of any potential agent or insurance company. It is important to remember that most agents are reputable professionals trained in their areas of expertise. Insurance agents must take and pass certain tests to become licensed. Besides the license exams, to maintain an agent license, most states required that all agents complete continuing education courses to maintain their license. These courses can lead to professional insurance designations such as the following:

LUTCF Life Underwriting Training Council Fellow
CEP Certified Financial Planner
CEBS Certified Employee Benefits Specialist
CIC Certified Insurance Counselors
CLU Chartered Life Underwriter
RHU Registered Health Underwriter
ChFC Chartered Financial Consultant

How Is Workers Compensation Priced?

Tue, 29 May 2007 21:19:00 GMT

Each insurer files their rates with NDOI. The rates are applied to your payroll to determine your manual premium. Other factors, such as experience rating, schedule rating, deductible plans and other programs are applied to the manual premium to determine your final cost.

How Long Does A Company Have To Settle A Claim?

Tue, 29 May 2007 21:19:00 GMT

The UNFAIR CLAIMS SETTLEMENT PRACTICES ACT gives a company 30 days to investigate a claim, with some exceptions. The insurer should provide the necessary claim forms and reasonable assistance on completing those forms to the insured within 10 working days of notification of the claim. Within 15 working days of receiving all the properly completed claim forms, the insurer should advise the insured of the acceptance or denial of the claim, but not necessarily the dollar amount of the settlement. The dollar amount of the settlement should come at the end of their investigation. If a person who has filed a claim has a question about that claim, the insurance company must respond to the person within 10 working days. (Note: homeowner's investigations and settlements cannot generally be completed in 30 days).

How Long Does The Insurance Agency Have To Respond To My Claim?

Tue, 29 May 2007 21:19:00 GMT

The actual time may vary from state to state. However, the general rule adopted by most states is that the insurance company has 30 days to respond, unless an investigation cannot reasonably be completed within that time. If an insurer is unable to contact or locate its policyholder, the investigation may take longer. Further, if the insurer can't complete the investigation within 30 days they are usually required to keep you updated on the progress of their investigation and/or give a valid reason for the delay.

How Long Is An Insurance License Valid, And When Can It Be Renewed?

Tue, 29 May 2007 21:19:00 GMT

Initial individual licenses are issued to expire the last day of the month in the licensee's birth month in the first year after issuance in which licensee's age is divisible by two. Therefore, individuals born in even numbered years renew their license on their birthday in the even numbered years and individuals born in odd numbered years renew their license on their birthday in the odd numbered years.

Renewal instructions will be mailed to the licensee's business approximately 90 days prior to the expiration of the licensee.

How Much Are The Initial, Renewal, And Late Fees?

Tue, 29 May 2007 21:19:00 GMT

Initial License Fee . . . . . . . . . . . . . . . . .. $20.00
TwoYear Renewal Fee. . . . . . . . . . . . . . .$40.00
Late Reissuance Fee ... . . . . . . . . . . . . .$120.00 (within 30 days after expiration)

How Soon Does An Agent's Appointment Become Effective?

Tue, 29 May 2007 21:19:00 GMT

The agent's appointment shall be valid upon its execution if the appointment is mailed to the Department within ten days of that execution, and if the person holds a valid agent's license in the line or lines for which the insurer is requesting the appointment.

If the appointment of a licensed agent by an insurance company is terminated, the insurer shall give written notice of the termination and the effective date of such termination to the Director within five working days of the termination and to such agent when reasonably possible. The Director may require the insurer to demonstrate that he or she has made a reasonable effort to give such notice to the licensed agent.

How Soon Must I Advise The Insurance Department Of My New Address?

Tue, 29 May 2007 21:19:00 GMT

Every person licensed under the Insurance Producers Licensing Act shall notify the department within thirty days of any change in such person's residential or business address. Any person failing to provide such notification shall be subject to a fine by the director of not more than five hundred dollars per violation, suspension of the person's license until the change of address is reported to the department, or both. Form #DOI9110 must be submitted to report a change of address.

I Am Not Required By Statute To Carry Workers Compensation Insurance, But My General Contractor Says I Have To Have It. Can He Do This?

Tue, 29 May 2007 21:19:00 GMT

Yes he can. The workers compensation statute says that the general contractor is liable for any injuries to the employees of uninsured subcontractors. Because of this, the general contractor's insurer will charge additional premium if you cannot provide proof of coverage, even if you have no employees. If the general contractor says he won't hire you unless you have a policy, you will need to buy a policy or work for a general contractor who does not make this requirement.

I Am Not Satisfied With The Company I Currently Have My Medicare Supplement With. How Often Can I Switch Companies?

Tue, 29 May 2007 21:19:00 GMT

Each year on your Medicare supplement annual anniversary date you have the ability to switch companies as long as you apply for the same plan (AJ) that you currently are enrolled in and you apply for the policy within 30 days before or after your annual anniversary date.

I Contacted My Company About A Loss To Determine If It Was Covered Under The Policy. I Never Collected A Penny From The Insurer. Can They Record This As A Claim?

Tue, 29 May 2007 21:19:00 GMT

Yes, all claims made are considered part of the consumer's claims experience.

I Have A Dispute With My Insurer Regarding My Classification, Experience Modification Or Interpretation Ncci Rules That Are Not Addressed By Department Rule Or Regulation. How Do I Resolve This?

Tue, 29 May 2007 21:19:00 GMT

As with any dispute, you should first try to resolve the problem with your insurer.

If you find that you are not getting a satisfactory resolution and you still feel that your position is valid, then you should contact the NDOI. The Department will try to resolve the problem, but if this is not possible and you are still not satisfied, then you can make an appeal to the Nebraska Workers' Compensation Review Board.

I Submitted Two Estimates, And The Insurance Company Revised The Estimate And Paid Me Based On The Revised Estimate. Can They Do This?

Tue, 29 May 2007 21:19:00 GMT

Yes, as long as the revised estimate properly repairs your vehicle. You need to have your body shop review the revised estimate. If they feel they cannot properly repair your vehicle based on the revised estimate, the repair facility should contact your adjuster.

I've Had An Accident With An Uninsured Motorist. What Do I Do?

Tue, 29 May 2007 21:19:00 GMT

The Nebraska Department of Revenue enforces the financial responsibility (mandatory liability) laws in this state. They will investigate and, if necessary, enforce the statute. Also, if you were injured, you will want to report the loss under your uninsured motorist coverage with your company.

If I Am Injured On Someone Else's Property, Does The Homeowner's Liability Coverage Cover The Cost Of My Injuries?

Tue, 29 May 2007 21:19:00 GMT

Only if the homeowner was negligent, causing your injuries. If the homeowner is not negligent, then coverage only is available under the medical coverage provision of the policy. This would cover only incurred medical expenses up to a limited dollar amount. It would not cover payment for pain and suffering, lost income, etc.

If I Call An Agent For A Quote Of An Automobile Insurance Premium And Later Decide To Apply For A Policy Based On The Rate Quote, Is It Guaranteed?

Tue, 29 May 2007 21:19:00 GMT

No. Occasionally an agent might make a mistake in calculating a rate, and the company is required by Nebraska law to use the rates filed with and approved by the Insurance Department. If the company were to vary too far from stateapproved rates, they would be in violation of Nebraska statutes.

If I Cannot Agree With The Company On The Amount To Settle My Homeowner's Claim, What Can I Do?

Tue, 29 May 2007 21:19:00 GMT

If the dispute is the value of damage and not the cause of the loss, you can ask for consideration under the appraisal section of the policy. The procedure to request and implement an appraisal should be explained in your homeowner's contract.

If I Change From One Individual Health Policy To Another, Can The Company Impose Preexisting Condition Exclusion On The New Policy?

Tue, 29 May 2007 21:19:00 GMT

Yes.

If My Roof Is Damaged, Does The Company Have To Replace My Whole Roof?

Tue, 29 May 2007 21:19:00 GMT

No, they only have to replace the damaged area, even if the shingles will not match. Note that your homeowner's policy is NOT a maintenance policy. It does not pay for wear and tear or agerelated damage.

If My Vehicle Is Declared A Total Loss, How Much Must The Insurance Provider Reimburse Me?

Tue, 29 May 2007 21:19:00 GMT

The insurance provider owes you the fair market value of your vehicle before the accident in your local area. The fair market value is defined as what a willing buyer would have paid a willing seller for your vehicle in an open market. You can determine this amount by using dealer quotes and/or newspaper advertisements. In addition, you can also rely upon other auto sales publications, as long as the vehicle being sold is comparable to yours in mileage, condition, options, etc.

If The Insurance Company Pays Me, Do I Have To Have The Vehicle Fixed?

Tue, 29 May 2007 21:19:00 GMT

Insurance providers vary in their policies regarding payment of damage amounts. Your insurance provider may have language in your policy regarding whether it is necessary to repair your vehicle. Some insurance providers will not issue a reimbursement check in your name only. Sometimes the insurance provider will make the check out to both you and the repair shop. Since there is no universal rule, it is important to carefully read your policy.

Is An Insurance Company Obligated To Issue Me An Automobile Insurance Policy?

Tue, 29 May 2007 21:19:00 GMT

No. Automobile insurance providers are not obligated to offer coverage to all applicants in Nebraska. Each company has its own underwriting requirements and, therefore, may decline an application if it does not meet the company's criteria.

Is It Legal For An Auto Insurer To Place Me In A High Risk Policy If I Have Not Been Insured In The Last 30 Days?

Tue, 29 May 2007 21:19:00 GMT

Yes. Current Nebraska law does not prevent an insurer from doing so. This situation can be avoided by paying your premiums on time to avoid lapses in coverage.

My Company Is A Limited Liability Company. Are The Llc Members Covered?

Tue, 29 May 2007 21:19:00 GMT

Limited liability company members are covered by your workers compensation policy unless they specifically state they do not wish to be covered, using a special endorsement to your policy. Your insurer can provide you with this endorsement.

Once I Am Licensed, How Long Will It Be Before I Will Need To Renew It?

Tue, 29 May 2007 21:19:00 GMT

Initial individual licenses are issued to expire the last day of the month in the licensee's birth month, in the first year after issuance, in which licensee's age is divisible by two.

If your year of birth lands on an even numbered year you renew your license on your birthday on the even numbered years.

If your year of birth lands on an odd numbered year you renew your license on their birthday in the odd numbered years.

The Company Is Not Paying Me Fairly On My Total Loss. How Do You Establish A Vehicle's Value?

Tue, 29 May 2007 21:19:00 GMT

Sources such as book value and dealer quotes can be considered. If the value is disputed by either you or the insurer based on those sources, the only accurate determination can be made with similar vehicles available in the market. The condition of the vehicle, mileage and options are all used in determining your vehicle's value.

The Other Insurance Company Won't Pay For A Rental Car On My Liability Claim. Don't They Have To?

Tue, 29 May 2007 21:19:00 GMT

Not in all situations. If you have no other vehicle available, the insurer should cover the cost of a rental as part of your damages from the accident at least until they determine the loss on your car. No insurance statutes exist on this issue.

What About A Rental Car While Mine Is Being Repaired?

Tue, 29 May 2007 21:19:00 GMT

If the other person is at fault or if the other party's insurance company has accepted fault, then you are entitled to a rental car. Even if you are at fault, some insurance providers will provide you with a rental car. If your vehicle is considered a total loss, case law does not require the insurance provider to supply you with a rental car. However, it is usual company practice to provide loss of use until the first offer is made for a total loss settlement amount. If your company is handling the damages you must have rental coverage on your policy to obtain a rental car.

What Affects Home Insurance Prices?

Tue, 29 May 2007 21:19:00 GMT

There are many factors that may affect home insurance rates. The following are the most common:

Types of Construction
Frame houses usually cost more to insure that brick houses.
Age of House
New homes may qualify for discounts. Some insurance companies may not insure very old homes or may offer a limited form of coverage.
Local Fire Protection
Your home's distance from a fire hydrant and the accessibility of your home to your local fire department determines the fire protection classification.
Amount of Coverage
The amount of coverage you buy for your house, contents, and personal liability will affect the price you pay.
Deductible Amount
Your choice of a higher deductible will reduce the price for home insurance.
Discounts
Insurers may offer lower prices for such things as insuring your home and car with the same company and installing dead bolt locks or alarm systems.

What Are All These Adjustments On My Policy?

Tue, 29 May 2007 21:19:00 GMT

There may be many additional adjustments to your base premium, such as:

schedule rating,
expense constant,
experience modification factor,
premium discount, and
second injury fund surcharge.

All of these adjustments are made to determine your final premium due to the insurer. If you are not sure about an adjustment, you should call your agent or insurer and ask them to explain the adjustment.

What Are Benefits?

Tue, 29 May 2007 21:19:00 GMT

Benefits are the dollar amount payable by the insurance company to the claimant, assignee, or beneficiary under any valid policy.

What Are Benefits?

Tue, 29 May 2007 21:19:00 GMT

Benefits are the dollar amount payable by the insurance company to the claimant, assignee, or beneficiary under the policy.

What Are Some Examples Of Creditable Coverage?

Tue, 29 May 2007 21:19:00 GMT

Federal Employees Health Benefits (FEHBP)
Group health insurance (including COBRA)
Indian Health Service
Individual health insurance
Medicaid
Medicare
Military health coverage (CHAMPUS)
State health insurance high risk pools

What Are Some Important Considerations In Choosing My Policy?

Tue, 29 May 2007 21:19:00 GMT

Ask an agent or company to help you. The service and reputation of the company and the agent you select is important.
Review the application carefully with the agent; be sure all the answers are complete and accurate before you sign.
Don't buy life insurance unless you intend to stick with your plan. Your decision to protect your family may involve the purchase of a new policy or the replacement of existing coverage.
Although replacement can be beneficial, it may be very costly in the early years of a new policy if you cancel an existing policy. Don't drop one policy and buy another without a thorough evaluation of both the new policy and the one you have now.
Read your policy carefully! Most states require an insurance company to provide a free look period that begins at the delivery of the policy. The agent should explain anything not clear to you.

What Are Some Important Initial Considerations?

Tue, 29 May 2007 21:19:00 GMT

Decide how much insurance protection you need and can afford.
Make informed decisions when you buy a policy.
Choose the kind of policy that has benefits that most closely fit your needs.

What Are Some Of The Details Of Individual Insurance In Nebraska?

Tue, 29 May 2007 21:19:00 GMT

CHIP coverage includes the following:

hospital and physician care;
prescription drugs;
home health care;
organ transplants, and other services.

A maternity benefit is offered for an additional premium.

For most services, the plan will pay for 80% of covered charges after you have satisfied your annual deductible.

Under CHIP, you have a choice of two plans:

a major medical plan option,
and a PPO option.

Each has a deductible from $250 to $2,000. After deductible and maximum outofpocket, CHIP pays 100% up to a limit of $2,000 lifetime limit of 1 million.

Premiums will vary depending on factors such as:

the deductible you choose;
your age;
gender;
where you live,
and whether you smoke

Contact the CHIP Customer Service Center or the Nebraska Department of Insurance for more information or to apply for CHIP coverage.

What Are The Benefits Have Having Term Insurance?

Tue, 29 May 2007 21:19:00 GMT

Term insurance is beneficial because it can provide security to families and businesses at a reasonable cost. The cost of buying term insurance is low compared to whole life insurance and the benefits paid out can be as high as you want. Term insurance is also an inexpensive method to add on additional coverage to an existing whole life insurance policy.

What Are The Different Types Of Life Insurance Policies?

Tue, 29 May 2007 21:19:00 GMT

The following are different types of life insurance policies and their characteristics. Keep in mind that the intent of life insurance is to provide for the life of your heirs and/or beneficiaries for such things as payment of debts and to provide family income. In addition, the policy can provide supplemental income for retirement.

Term Life:

Low initial premium.
May be renewable and convertible to whole life insurance.
Protection for a specified period.
Premium increases with each new term.
Typically no cash value.
Low initial premium.
May be renewable and convertible to whole life insurance.

Traditional Whole Life:

Permanent protection.
Fixed premium.
Fixed cash value.
Fixed death benefit.
You can defer taxes on the earnings generated by the policy until you withdraw cash, take out a loan policy, or receive annual interest earnings on dividends.

Universal Life:

Flexible premium.
Flexible death benefit.
Cash value reflects premiums paid and current interest after deducting the cost of death benefits and other expense charges.
You can defer taxes on the earnings generated by the policy until you withdraw cash or take out a policy loan.

Excess Interest Whole Life:

Permanent protection.
Fixed premium.
Fixed death benefit.
Cash value growth depends on current interest credited to the cash value account. If you have a fund and your insurance company credits excess interest to the fund it will grow faster.
You can defer earnings generated by the policy until you withdraw cash, take out a loan policy, or receive annual interest earnings.

VARIABLE LIFE:

Longterm protection.
Fixed or flexible premiums.
Policyholders sometimes control the investment of their cash values in stock, bond, Money market or other accounts and bears all the investment risk.
Death benefits and cash values vary in relation to the performance of funds in a separate account.
You can defer taxes on the earnings generated by the policy until you withdraw cash or take out a policy loan.

ACCELERATED DEATH BENEFITS:
Some life insurance companies offer to pay a portion of the death benefit of a policy before death occurs if the policyholder is diagnosed as terminally ill and wants to use the money.

Upon the death of the insured, the beneficiary receives the remainder of the death benefits.

The policyholder may pay an additional premium on the base policy for this option; or the insurer may assess a charge against the death benefit or accelerated payment.

VIATICAL SETTLEMENTS
Some terminally ill patients may hold life insurance policies with companies that do not offer accelerated death benefits. A viatical settlement can provide cash benefits prior to death.

A viatical settlement is a contract in which the terminally ill owner of a life insurance policy sells the death benefit of their policy to a third party in return for immediate cash payment.

The investor or investors who purchase that right become the beneficiary in exchange for a negotiated amount, which is lower than the face value or death benefit of the policy. In addition, the investors take over the premium payments. Investors in viatical contracts recoup their investment when the full death benefits are paid upon the death of the original policy owner.

A viatical contract requires close scrutiny by the original policy owner since these agreements are complicated financial and legal transactions. If you are considering such a contract, you may want to consult with your attorney, physician, life insurance agent or company, and accountant or financial planner. Proceeds from the settlement may create tax liability and affect Medicaid eligibility.

DISAPPEARING PREMIUMS:
Life insurance policies with accumulated cash values frequently offer the policyholder the option of using the policy's cash value or dividends to cover premium payments at a future date. Although the premiums seem to disappear, payments are still being made from the policy's cash values.

If you elect this option, you should carefully monitor your policy's cash value. Changes in interest rates, cost of insurance, policy expenses and loans can quickly eliminate your policy's ability to pay for itself. Such changes could force you to resume premium payments to keep your policy.

What Are The Lines Of Insurance Available To Qualified Licensed Agents?

Mon, 04 Jun 2007 21:51:22 GMT

An agent may become licensed to write one or more of the following lines of insurance:

property and casualty;
life insurance and annuities;
variable contracts (no exam) mechanical breakdown;
sickness, accident, and health;
credit life/credit accident and health (no exam;
title;
crop organization;
assessment association credit insurance (no exam);
miscellaneous
1. automobile
2. prepaid legal
3. motor club
4. prepaid dental
5. health maintenance
6. unemployment
7. group credit property (no exam)

NOTE: There are no prelicensing requirements for lines 3, 5 and 9 ag, and no insurance examination is required for lines 3, 5, 9f, and 9g above.

What Are The Pre-Licensing Educational Requirements For The Various Lines Of Authority?

Tue, 29 May 2007 21:19:00 GMT

Effective January 1, 1994, individuals seeking a license must comply with the following prelicensing education requirements prior to taking the qualifying examinations:

Property and Casualty
34 hours property and casualty,
6 hours ethics.
Life and Annuities
14 hours life and annuities,
6 hours ethics.
Sickness, Accident and Health
14 hours accident and health (including 6 hours in Medicare Supplement and LongTerm Care),
6 hours ethics.
Combined Life and Annuities, and Sickness, Accident and Health
17 hours life and annuities,
17 hours sickness, accident and health, including 6 hours of Medicare Supplement And LongTerm Care,
6 hours ethics.
Title
6 hours Title,
6 hours ethics.
Assessment Association
6 hours assessment,
6 hours ethics.
Crop
3 hours crop & hail,
3 hours ethics.

Persons completing the prelicensing education requirements have up to one year from the date of completion to take the written agent's examination. A list of approved courses to comply with the prelicensing education requirements is available from the Department upon request or on the Department's web site.

What Are The Requirements And Qualifications That Must Be Met To Obtain A Resident Insurance Agent License?

Mon, 04 Jun 2007 21:51:22 GMT
The State of Nebraska has established the following qualifications and requirements that must be met before you can be granted a license:
Applicant shall be at least 19 years of age.
Applicant shall be competent, trustworthy, and financially responsible and have a good personal and business reputation.
Applicant shall maintain his or her principal place of residence in Nebraska.
Applicant shall comply with the prelicensing education requirements (Effective January 1, 1994).
Applicant shall pass a written examination to determine competence to act as a licensed agent in those lines of insurance for which such applicant desires to become licensed.
Submit a properly completed application along with the appropriate fee.

What Are The Requirements For Obtaining A Variable Contracts License?

Tue, 29 May 2007 21:19:00 GMT
You can qualify for a variable contracts license in two ways:
hold a life license, or apply concurrently for a
life & annuities and a
variable contract license and submit a copy of your
examination score indicating that you passed the NASD Series 6 and/or 7 and 63 examinations.

What Are The Restrictions On Paying Individuals Who Work As Agents Or Brokers?

Tue, 29 May 2007 21:19:00 GMT
An insurer, broker, or agent shall not pay any commission, brokerage, or other valuable consideration to any person, without special authorization, for services rendered in The State of Nebraska as an agent or broker unless one of the following criteria has been met: the person has been appointed by the insurer; the person is licensed as a broker in this state, or the person was legally licensed at the time services were rendered.

What Constitutes Continuous Coverage?

Tue, 29 May 2007 21:19:00 GMT
Continuous coverage is deemed as such provided that you do not allow health insurance to lapse for a period more than 63 days.

What Do I Need To Obtain An Insurance Agency License?

Mon, 04 Jun 2007 21:51:22 GMT
Ask for form number DOI9002 Application for Insurance Agency License, and complete and submit it to the Nebraska Department of Insurance together with the appropriate license fee.

What Does Comparative Negligence Mean?

Tue, 29 May 2007 21:19:00 GMT
Comparative negligence law is based on a percentage of negligence. If one person's negligence was less than the negligence of the party with whom a claim for recovery is made, recovery will be in proportion to the amount of negligence attributed to such other party. Nebraska subscribes to the pure comparative negligence theory of fault.

What Does Uninsured Motorist Coverage Cover?

Tue, 29 May 2007 21:19:00 GMT
Uninsured motorist coverage applies to bodily injury only. Your uninsured motorist coverage will protect you from hitandrun drivers. It covers you for injuries sustained while in your car or as a pedestrian when hit by an uninsured driver. It does not cover damage to your vehicle.

What Happens If The Hmo Denies My Claim For Payment Of Services?

Tue, 29 May 2007 21:19:00 GMT
The company must have an appeal process for you to follow. There is a first and second level appeal process in which you and your physician can present documentation showing your reasons for requesting the proposed treatment. Your appeal must be in writing and the insurance company has up to 30 days to complete an investigation on each level of grievance. You also have the right to contact the Nebraska Department of Insurance anytime during this process. The toll free number for the Nebraska Department of Insurance is 18007267390.

What Happens To My Group Health Coverage If Leave My Employer?

Tue, 29 May 2007 21:19:00 GMT
If your employer has more than 20 employees, it is subject to the federal Consolidated Omnibus Budget Reconciliation Act (COBRA) law and entitled to a minimum of 18 months of continuation coverage. Under each of these options, you will have to pay the full premium yourself even if your employer paid part of your premium while you were employed. You can find out more about COBRA continuation of group health benefits from the Federal Department of Labor Office of Pension and Welfare Benefits Administration Web site.

What Happens When My Group Health Coverage Ends?

Tue, 29 May 2007 21:19:00 GMT
You can apply for individual health coverage under the federal law Health Insurance Portability and Accountability Act (HIPAA). This type of policy is issued on a guaranteed issue basis if you meet the qualifying criteria. However, there is no limit on the maximum premium the company can charge. Preexisting conditions are waived.

What If Certain Things Occur During This Waiting Period?

Tue, 29 May 2007 21:19:00 GMT
Certain events trigger what is called a "special enrollment opportunity." Examples of these are:
the birth, adoption, or placement for adoption of a child;
marriage, and
loss of other coverage (for example, that you or your dependents have through yourself or another family member because of death, divorce, legal separation, termination, retirement, or reduction in hours worked)

What If The Original Estimate Does Not Match The Actual Costs?

Mon, 04 Jun 2007 21:51:22 GMT
The repair shop generally works with the adjuster to handle any additional costs that occur due to hidden damage or differences in the price of parts. If the insurance provider and the repair shop can't agree, it is the responsibility of the insurance provider to provide the name of a repair shop that will repair your vehicle for the amount of the estimate. The repair shop the company suggests must be within a reasonable distance from where you live.

What Is A Beneficiary?

Tue, 29 May 2007 21:19:00 GMT
A beneficiary is the person designated or provided for by the policy terms to receive the proceeds upon the death of the insured.

What Is A Claim?

Tue, 29 May 2007 21:19:00 GMT
A claim is a demand to the insurance company for payment of benefits under the insurance contract.

What Is A Legal Service Representative?

Tue, 29 May 2007 21:19:00 GMT
A legal service representative is an individual appointed to represent a legal service insurance corporation that has been authorized by NDOI to conduct a prepaid legal expense insurance business in Nebraska.

What Is A Level Term?

Tue, 29 May 2007 21:19:00 GMT
Level term insurance means that the amount of coverage and the price of the premiums will not go up or down during the covered period of time.

What Is A Preexisting Condition?

Tue, 29 May 2007 21:19:00 GMT
This is normally a physical or mental condition for which medical advice, diagnosis, care or treatment is recommended or received before the effective date of the policy. The definition can vary from policy to policy.

What Is Actual Cash Value (Acv) Vs. Replacement Cost Coverage?

Mon, 04 Jun 2007 21:51:22 GMT
All Nebraska auto policies are written for ACV. Because of the generally large availability of used vehicles, auto settlement values are determined by similar vehicles available in the market.
Homeowners can endorse their policy to change their ACV to replacement cost coverage. ACV is the value of an item (including depreciation) at the time of the loss. Replacement cost equals a new item's cost without depreciation. Replacement cost value is not paid until the item is actually replaced.

What Is An Agent?

Tue, 29 May 2007 21:19:00 GMT
An agent is a licensed representative of an insurance company who solicits, negotiates, or effects contracts of insurance and provides service to the policyholder for the insurer.

What Is An Annual Or Yearly Renewable Term?

Tue, 29 May 2007 21:19:00 GMT
Under this type of policy, the premiums will increase on a yearly basis. The premiums will initially be low and the premiums will increase with the age of the insured.

What Is An Application?

Tue, 29 May 2007 21:19:00 GMT
An application is a signed statement of facts requested by the insurance company on the basis of which the company decides whether or not to issue the coverage. The application becomes part of the health insurance contract when it is attached to and made a part of the contract.

What Is An Assignment?

Tue, 29 May 2007 21:19:00 GMT
An assignment is the signed authorization by the policyholder for the insurance company to pay benefits directly to the hospital, doctor, or other provider.

What Is An Experience Mod?

Tue, 29 May 2007 21:19:00 GMT
An experience modification factor is a means to recognize the differences in loss history between your business and average businesses in your classification code. For example, if your loss experience has been better than the average business in your classification code, then your policy should have an experience mod below 1.00; your premium will decrease.
If your loss experience is worse than the average business, then you will have an experience mod above 1.00; your premiums will increase.

What Is An Hmo?

Tue, 29 May 2007 21:19:00 GMT
HMO stands for Health Maintenance Organization, a managed care plan where you have the ability to choose your primary care physician (PCP) from a list of network providers. Your PCP is responsible for management of all aspects relating to your health care. If you require care from any network provider other than your PCP, you may need a referral from your PCP to see that provider. Check with your plan to see if your PCP is also the "gatekeeper" for access to other network providers. You must obtain care from a network provider in order to have your claim paid through the HMO. Treatment received outside the network is generally not covered, or covered at a reduced level.

What Is Cobra?

Tue, 29 May 2007 21:19:00 GMT
COBRA is a federal law that regulates group health insurance. If you lose your job and you worked for an employer who has more than 20 employees, you may be able to continue your group coverage for up to 18 or 36 months under COBRA.

What Is Comparative Fault?

Tue, 29 May 2007 21:19:00 GMT
In 1983, Nebraska adopted the rules of pure comparative fault. Pure comparative fault allows your damages to be reduced by the percentage you are at fault in a loss. Insurers are allowed to investigate an accident and make a decision as to the percentage of fault of all parties involved. They will make voluntary offers based on this opinion. If you disagree with their evaluation, you should consult an attorney or turn over the matter to your own insurance company to handle under your collision coverage.

What Is Credit Insurance?

Tue, 29 May 2007 21:19:00 GMT
Credit life insurance pays in the event of the debtor's death. Credit accident & health (or disability) insurance covers loan payments due while the debtor is ill or disabled. The most commonly sold credit insurance is referred to as credit life or credit accident and health (or disability) insurance. Credit life insurance may be purchased by itself or in a combination policy also providing credit accident and health (or disability) coverage. Credit accident or health (or disability) insurance is not available except in combination with credit life coverage.
Credit Life and Credit Accident & Health Insurance is frequently offered to consumers financing the purchasing of an automobile. The purchase of credit life and credit accident & health insurance is strictly optional. A lender may not refuse to give a consumer the loan simply because the consumer declines to purchase credit life and credit accident & health insurance.

What Is Full Coverage?

Tue, 29 May 2007 21:19:00 GMT
The definition varies from policy to policy. Often there are misunderstandings surrounding the coverage. For this reason, it is important to carefully read your policy. In general, even under a full coverage policy, towing, rental, and extended coverage for special stereo or other equipment are additional policies that you must purchase.

What Is Individual Health Insurance?

Tue, 29 May 2007 21:19:00 GMT
Individual health insurance is health coverage you buy for yourself if you are not covered by either your current employer's health plan or by your former employer's plan under COBRA (detailed below). You can buy an individual health plan from the Nebraska Comprehensive Health Insurance Pool. (CHIP) You will not face a new preexisting condition exclusion period. You can also buy insurance from CHIP if you have been turned down by a health insurance company and meet other qualifications. In this case you may face a new preexisting condition exclusion period.

What Is Long-Term Care Insurance?

Tue, 29 May 2007 21:19:00 GMT
These are individual insurance policies that may help you when you are unable to take care of yourself due to prolonged illness or disability. However, policies may or may not cover home health care, adult care or other alternative services.

What Is Private Mortgage Insurance?

Tue, 29 May 2007 21:19:00 GMT
If you put less than 20% down when purchasing a house, many lenders require you to buy Private Mortgage Insurance (PMI) to cover the remainder of the 20% and to guarantee your loan. Unfortunately, many people keep paying for PMI coverage they no longer need after they have acquired more than 20% equity in their home. The terms of your mortgage agreement may require that you obtain an appraisal to establish that you have reached the 20% equity mark before the PMI obligation is lifted.
However, you can avoid PMI and still put down less than 20% by purchasing a twoloan package. Some mortgage companies offer packages that work as follows: The first mortgage may be the traditional 30year fixedrate mortgage for 80% of the purchase price. The second mortgage could then be a 15year fixedrate second mortgage for the remainder of the purchase price (less your cash down payment). If you find a lender who allows you to do such a twoloan package you are putting your money into a mortgage instead of giving it away on PMI. In addition, unlike your PMI premium, your mortgage interest is tax deductible

What Is Schedule Rating?

Tue, 29 May 2007 21:19:00 GMT
Schedule rating allows your insurer to offer you a discount (or a surcharge) to your premium based on specific factors that the insurer believes will affect your insurable risk.
The plan cannot be based on any prior loss experience your business has had. However, it can take into consideration that the insurer does not feel that your experience modification factor truly reflects your risk.
For instance, if the insurer believes that clean, welllit premises lead to fewer losses, and you have a clean, welllit plant, the insurer can offer you a discount on your premium. The maximum discount or surcharge allowed is ±35% in 1999. The limit will be ±25% effective 1/1/2000.

What Is Term Life Insurance?

Tue, 29 May 2007 21:19:00 GMT
Term insurance provides protection for a specified period of time; a term of 1, 5, 10 or 20 years or up to age 65 is available. This type of policy only pays a benefit if you die during the policy term. Term insurance does not build cash value. If you stop paying your premium, the insurance expires. This insurance generally is less expensive than other types of life insurance.

What Is The Assigned Risk Market (Also Referred To The "Alternative Residual Market") And Why Do I Have To Be In It?

Tue, 29 May 2007 21:19:00 GMT
The assigned risk market is a mechanism that has been set up to ensure that employers can obtain workers' compensation coverage if they are in good faith entitled to workers' compensation coverage, but cannot secure such coverage through ordinary means. Many employers are in this market because they are engaged in an inherently risky industry, have bad loss experience, are to small and/or are just starting a new business.

What Is The Difference Between A Qualified And A Non-Qualified Plan?

Tue, 29 May 2007 21:19:00 GMT
Benefits paid by a qualified longterm care plan generally are not taxable as income. Benefits from a nonqualified longterm care plan may be taxable as income. Check with your tax advisor about the possibility of deducting a portion of the premiums paid in addition to the individual tax consequences involved.

What Is The Difference Between Replacement Cost Vs. Actual Cash Value?

Tue, 29 May 2007 21:19:00 GMT
Replacement Cost is the amount it would take to replace or rebuild your home or repair damages with materials of similar kind and quality, without deducting for depreciation. Depreciation is the decrease in home or property value since the time it was built or purchased because of age or wear and tear. Many insurers require homeowners to insure their homes for at least 80% of the replacement cost. If the homeowner fails to insure for at least that, a penalty is applied to partial losses. For example, if it would cost $50,000 to replace your home and it is insured for $40,000 (80%), and a fire causes $25,000 worth of damage, then your insurance company will pay the full $25,000.
On the other hand, if your $50,000 home is insured for $30,000 and you suffer a $25,000 loss, your company would pay for only part of the loss and you would have to pay for the balance yourself. It may therefore be advisable to insure your home at a minimum of 80% of its replacement cost. Check with your agent or insurance company to see what is required. You may wish to insure at 100% of replacement cost so you will have sufficient coverage in the event of total loss.
Actual Cash Value is the amount it would take to repair or replace damage to your home after depreciation. For example, if your roof has a 20year warranty and is 17 years old, there would be depreciation for the age and condition of the roof.
Most standard home insurance policies cover the contents of your home (i.e. personal belongings) on an actual cash value basis. Many insurers offer an option for you to insure your belongings at a replacement cost. The premium will be slightly higher for this coverage; however, you may want to consider the option.
Whether your home is insured for replacement value or actual cash value, it is important to keep track of its value. For instance, the addition of a room, improvements, and yearly inflation all increase the replacement cost of your home, while the actual cash value of the home may decrease over time. Check with your agent or insurance company at least once a year to make sure your policy provides adequate coverage.

What Is The Legal Definition Of What The State Of Nebraska Considers To Be An Insurance Agency?

Tue, 29 May 2007 21:19:00 GMT
Insurance agency shall mean partnership, unincorporated association, or corporation transacting or doing business with the public or insurance companies as an insurance agent or broker.

What Is The Nonresident Agent's Requirements And Procedures For Obtaining A License?

Tue, 29 May 2007 21:19:00 GMT

Applicant must hold a valid agent or broker's license in his or her state of residency in the kinds of insurance for which the applicant is seeking a nonresident license in Nebraska.
Applicant shall be at least 19 years of age.
Applicant shall be competent, trustworthy, and financially responsible and have a good personal and business reputation.
Filing requirements
Application for Insurance Agent's License DOI9001. Both sides of the application must be completed in it entirety, signed and notarized.
An original home state certification not more than 90 days old. No other document will be accepted in lieu of the home state certification. The certification is obtained from the applicant's home state insurance department.
A check in payment of the license fee (refer to the schedule of fees below).
license fees nonresident agent's Initial Application fee................... $ 40.00
Renewal Fee (TwoYear License) ...................................................$ 80.00
Late Reissuance Fee (within 30 days after expiration)......................$160.00

What Is The Process Of Reinstating My License After It Has Expired?

Tue, 29 May 2007 21:19:00 GMT
Effective August 28, 1999 any license being reinstated between 30 days and 36 months after expiration, may be reinstated by completing the application and submitting it to the insurance department with a reinstatement fee. If continuing education were due that requirement must accompany the application.
Reinstatement fee ..............................................$100.00

What Is The Proper Procedure For Submitting An Application?

Tue, 29 May 2007 21:19:00 GMT
Once you have completed all of the prelicensing educational requirements and passed the qualifying exams, you may then proceed with the application process by:
Contacting the Nebraska Insurance Department and requesting an insurance agent's licensing application (Form DOI9001);
completing both sides of the application;
make sure it is signed and notarized;
submit a check for the appropriate fee, and the application to the insurance department.

What Is The Right Type Of Life Insurance For Me?

Mon, 04 Jun 2007 21:51:22 GMT
There are two basic types of life insurance: term insurance and permanent cash value insurance. Term insurance generally has lower premiums in the early years, but does not build up cash values that you can use in the future. You may combine cash value life insurance with term insurance for the period of your greatest need for life insurance to replace income. It makes sense to consult with a life insurance agent. An agent can explain what policy features are best suited to your needs.

What Is The Role Of Ndoi Regarding Workers Compensation?

Tue, 29 May 2007 21:19:00 GMT
NDOI reviews and approves workers compensation policy forms, endorsements and rules. We also monitor the workers compensation market to make sure it is competitive. We oversee the assigned risk pool to ensure fair rates and good service. We can answer any questions you may have about your workers compensation policy, coverage and experience rating. We can help you with any disputes you have with your insurance carrier. If you have questions about claims or medical treatment, the Division of workers compensation can help.

What Is Whole Life Insurance?

Tue, 29 May 2007 21:19:00 GMT
Whole life insurance is meant to be kept in force throughout your entire life. An important feature of whole life insurance is the accumulation of cash value. The cash value is the cash available to borrow against the policy, or the value of the policy paid to the policy owner when the contract is surrendered before maturity. Any withdrawal of cash value is treated as a policy loan and interest accumulates based on the loan amount. If you do not pay back the loan, the death benefit is reduced by the outstanding loan amount.
An annuity pays a monthly (or quarterly, semiannual, or annual) income benefit for the life of a person or for a specified period of time. The annuitant (insured) can never outlive the income from the annuity. While the basic purpose of life insurance is to provide an income for a beneficiary at the death of the insured, the annuity is intended to provide an income for the life of the annuitant.
There are two basic types of annuities, fixed annuities, which pay a fixed income backed by fixed dollar investment such as secure bonds and mortgages, and variable annuities, which vary in payment according to the value of stock and bond investments.

What Options Do I Have If My Employer Isn't Large Enough To Be Affected By Cobra?

Tue, 29 May 2007 21:19:00 GMT
If your employer has less than 20 employees, you are entitled to 9 months of continued group health coverage with your employers group plan under Nebraska law.

What Should I Consider When I Actually Buy Life Insurance?

Tue, 29 May 2007 21:19:00 GMT
When you buy life insurance, first decide how much you need to cover the financial effects of an unexpected or untimely death. Here are some questions to ask yourself:
How much of the family income do I provide? If I were to die early, how would my survivors, especially my children, get by? Does anyone else depend on me financially, such as a parent, grandparent, brother or sister?
Do I have children for whom I'd like to set aside money to finish their education in the event of my death?
How will my family pay final expenses and repay debts after my death?
Do I have family members or organizations that I would like to leave money?
Will there be estate taxes to pay after my death?
How will inflation affect future needs?
Remember to include individual, employer group insurance, veteran's insurance and any other assets such as savings and investments. Don't forget Social Security and pension plan survivor's benefits.

What Should I Do If I Am Involved In A Car Accident?

Tue, 29 May 2007 21:19:00 GMT
The first thing you should do is check to see if anyone is injured.
Call 911 if needed.
Notify the police to file an accident report.
Notify your company or agent if necessary.
Find your automobile policy and read it to be prepared for questions.
Merely exchange insurance information with the other driver DO NOT argue over the facts of the accident.
Be polite and cooperate with the police when they arrive.

What Should I Do With My Current Policy?

Tue, 29 May 2007 21:19:00 GMT
If you are thinking about terminating life insurance coverage that you currently have in force, here are some things you should consider.
If you decide to replace your policy, don't cancel your old policy until you have received the new one.
It may be costly to replace a policy. Much of what you paid in the early years of the policy was the company's cost of selling and issuing the policy. You may pay this type of cost again if you buy a new policy.
Ask your tax advisor if dropping your policy could affect your income taxes.
If you are older or your health has changed, premiums for the new policy will often be higher. You will not be able to buy a new policy if you are not insurable.
You may have valuable rights and benefits in the policy you now have that are not in the new one.
If the policy you have now no longer meets your needs, you may not have to replace it. You might be able to change the policy or add to it to get the coverage or benefits you now want.
At least in the beginning, a new policy may pay no benefits for some causes of death covered in the policy you now have.
In all cases, if you are thinking of buying a new policy, check with the agent or company that issued you the one you have now. When you bought your old policy, you may have seen an illustration of the benefits of your policy. Before replacing your policy, ask your agent or company for an updated illustration. Check to see how the policy has performed and what you might expect in the future, based on the amounts the company is paying now.

When Should I Apply For A Medicare Supplement Policy?

Tue, 29 May 2007 21:19:00 GMT
When you elect coverage under Medicare Part B either due to age or disability, you have a 6month open enrollment for a Medicare supplement policy, which guarantees you coverage with a plan and company of your choice. You may choose from the 10 standardized plans (AJ). If you do not purchase a plan within your 6month open enrollment, any company you apply with can deny coverage based on your health conditions. There are some limited additional open enrollment periods available to some persons disenrolling from a Medicare HMO. Please contact us about these.

Who Can Legally Present Themselves To The Public As An Agency, And What Is Required To Obtain That Right?

Tue, 29 May 2007 21:19:00 GMT
No person shall act as or hold himself, herself, or itself out to be an insurance agency until such person has procured a license in this state. No license shall be granted to an insurance agency unless the agency designates a licensed agent or broker who shall have full responsibility for the conduct of all business transactions of the insurance agency within the state relative to insurance. Such designated agent or broker shall be either an officer or a member of the agency and shall have either (1) more than a nominal financial interest in the agency or (2) be an active participant in the management of the agency Any individual associated with a licensed agency who solicits insurance shall be a licensed agent or broker.

Who Is Covered By My Policy?

Tue, 29 May 2007 21:19:00 GMT
All your employees, including corporate officers, are covered by your policy, with just a few exceptions. For example, sole proprietors and partners, farm laborers, domestic servants and individual owner/operator truckers, are not covered, but can be endorsed on the policy. Limited Liability Company (LLC) members and family members are covered unless you specifically exclude them.

Who Pays For Long Term Care?

Tue, 29 May 2007 21:19:00 GMT
You do. Medicare only pays for shortterm stays. Medicaid may pay if you are qualified for government assistance after spending down most of your assets.

Why Does The Insurance Company Have To Investigate The Claim When The Police Cited The Policyholder?

Tue, 29 May 2007 21:19:00 GMT
A traffic citation is not a determination of legal liability. The company is still obligated to investigate claims made according to the specifications of the policy. It is possible that there may be more than one person at fault and the liability would be shared. It may actually work to your benefit in terms of future premiums if your agency conducts an investigation.

Why Should I Buy Home Insurance?

Tue, 29 May 2007 21:19:00 GMT
Owners should buy home insurance to protect both their home and their personal property. Tenants should buy home insurance to protect their furniture and personal property. In addition, everyone should buy home insurance to protect against liability for accidents that injure other people or damage their property.

Will My Rates Go Up Or Will I Lose My Insurance If I Am Involved In An Accident Or Get A Ticket?

Tue, 29 May 2007 21:19:00 GMT
If you are not at fault in an accident, your insurance should not be affected. If you are at fault, get a ticket for a moving violation, or are involved in an expensive collision claim, the company will consider that when setting the price for your insurance policy. In most cases, however, be prepared to see your rates go up a bit, as Nebraska allows for reasonable adjustments to your premiums based upon your traffic record and driving performance.

Will The Insurance Provider Reimburse Me For The Time That I Had To Spend In Filing My Claim And Seeking Estimates?

Mon, 04 Jun 2007 21:51:22 GMT
No. A property damage claim includes the cost to repair or replace the vehicle and compensation for loss of use of that vehicle. The time you spend on securing payment may be considerable; however, the insurance provider probably won't compensate you for time or lost wages under a property damage claim.

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